A 63-year-old Indian woman has been dismembered and beheaded by machete-wielding villagers who accused her of practising witchcraft, police said Tuesday.

Seven people have been arrested over the death of Moni Orang, a mother of five who was seized from her home in the northeastern state of Assam on Monday after local priests said she was casting spells.

"The attackers armed with machetes and other crude implements descended on the village and took away Moni Orang from her house and then brutally killed her," senior police official Manabendra Dev Roy told AFP.

"She was decapitated and her limbs were chopped off."

On Tuesday villagers stormed the local police station to protest against the arrests.